People’s Bank achieves record profit in 2024

Prof. Narada Fernando

Clive Fonseka

People’s Bank for the year ended 31 December 2024 reported a total consolidated operating income of Rs. 145.1 billion and post-tax profit of Rs. 28.8 billion, reflecting a growth of 49.9 percent and 152.7 percent. This included the benefit stemming from ISB restructuring which was fairly modest relative to peers.

Consolidated net interest income rose to Rs. 122.9 billion during the year from Rs. 67.8 billion in the same period 2023 - reflecting timely pricing of assets & liabilities in line with changing market interest rates. As a result, consolidated net interest margins improved to 3.7 percent in 2024 from 2.1 percent in 2023. 

Consolidated net fees & commissions amounted to Rs. 15.3 billion for the year - representing a growth of 10.5 percent - also a group all-time high. Total consolidated operating expenses amounted to Rs. 75.7 billion (2023: Rs. 62.2 billion).

Total consolidated customers deposits reached Rs. 2,947.9 billion (end 2023: Rs. 2,745.2 billion) whilst net loans were Rs. 1,665.0 billion (end 2023: Rs. 1,823.8 billion); being after the settlement of Rs. 262.6 billion in loans granted to a sovereign backed state enterprise by way of treasury bonds. Excluding the said settlement, net loan growth was close to 5.7 percent. Total consolidated assets reached Rs. 3,471.7 billion at end 2024 (end 2023: Rs.3,208.2 billion). 

The bank’s total Tier I and Total Capital Adequacy Ratios were 10.9 percent and 16.5 percent, respectively at December 31, 2024 (end 2023: 12.4 percent and 17.4 percent) whilst, on a consolidated basis, it was 12.6 percent and 17.7 percent (end 2023: 13.7 percent and 18.2 percent). To save any doubt, these were after taking into account all prudential deductions; including those specifically relating to the sovereign backed state owned enterprise restructure which was taken in full all things prudent considered. In addition, the bank’s solvency levels were augmented by the Rs. 13.5 billion Basel III compliant Tier II debt issuance as undertaken during Q4-2024. 
People’s Bank Chairman Prof. Narada Fernando noted that as the institution continues to navigate the complexities of a recovering macroeconomic environment, it remains committed to intensifying efforts in several core areas.

First, on driving innovation across all aspects of our business, ensuring Peoples’ Bank stays ahead of the curve in delivering cutting-edge financial solutions. 

Second, to strengthen collaboration, both within the organisation and with external partners and thereby creating a more cohesive and agile approach to problem solving. 

Third, to further promote financial inclusion, so that all segments of society have the opportunity to participate in and benefit from the broader economy.

Commenting on the results, People’s Bank Chief Executive Officer/ General Manager Clive Fonseka shared that amidst unforeseen challenges, the team has once again exemplified extraordinary resilience, adaptability, and an unwavering commitment to excellence. 

“The results we’ve achieved are not only the highest in the institution’s history but also a testament to our ability to make meaningful progress despite the many obstacles we’ve encountered along the way,” he said.

He added that by focusing on enhancing operational efficiency, elevating our customer experience, and making strategic investments in both technology and talent, People’s Bank has laid the groundwork for sustainable, long-term growth. 

“As we look to 2025 and beyond, we remain resolutely focused on our strategic priorities. While challenges are inevitable, particularly in a recovering macroeconomic environment, we are confident in our ability to navigate them with resilience and precision. By harnessing the full potential of our collective strengths and expertise, we are well-positioned to turn challenges into opportunities,” added Fonseka.